Energy Investors Funds Closes Seventh Fund With US$1.35 Billion

Energy Investors Funds
2007-07-09 21:56 709

NEW YORK, July 9 /Xinhua-PRNewswire/ -- Energy Investors Funds ("EIF"), an established private equity fund manager that invests in the energy and electric power sector, today announced that it has successfully closed the firm's seventh institutional fund, the United States Power Fund III, L.P. with US$1.35 billion in commitments, exceeding the $1 billion target established for the fund.

Investors in US Power Fund III include ABP Investments, Contra Costa County Employees Retirement Association, Howard Hughes Medical Institute, John Hancock Life Insurance Company, Mayo Clinic, New York Life Investment Management, and University of Toronto Endowment Fund and Pension Plan, in addition to other corporate and public pension funds, funds of funds, endowments and foundations, insurance companies, banks and financial institutions, and family offices. The global investor base represents the U.S., Canada, Europe and Australia, with 43 investors in total.

"We had a tremendous response from the investor community for US Power Fund III," said John Buehler, Energy Investors Funds Managing Partner. "The power market in the United States is still extremely vibrant and investors responded to our experienced team and 20-year track record as an innovative private equity investor in this sector."

US Power Fund III, EIF's largest fund to date, will continue the firm's strategy of acquiring U.S. power and energy generation and transmission assets with long-term off-take contracts. The fund seeks to maximize returns to, and achieve liquidity for, its investors through regular cash distributions and proceeds from the sale of assets. This investment strategy has remained consistent throughout the firm's history. The firm relies primarily on its own sourcing for deals, rather than participating in auctions.

"Our investment philosophy is as relevant today as any time in our history due to the rising energy costs and increased demand for electricity, which calls for the construction of efficient, low-emission power assets," said Herb Magid, Energy Investors Funds Managing Partner. "We will continue to invest across the spectrum of power assets, including assets that are in the development stage as well as facilities that are under construction or already in operation to create a portfolio of geographically and technologically diversified assets."

"Our deal pipeline remains strong and is growing due to the increased need for utilities and development companies to seek outside financial partners like EIF to help build assets," said Terry Darby, Energy Investors Funds Managing Partner. "As the country's power infrastructure ages, and recent energy policy changes nationwide call for the development of cleaner power plants, we should continue to see robust opportunities to put capital to work for our investors."

US Power Fund III has already made an investment in the Green Line development project.

Bingham McCutchen served as legal advisor.

About Energy Investors Funds

Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. As investment managers Energy Investors Funds seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. Energy Investors Funds has mobilized over US$3.3 billion in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 90 diversified investments with a combined underlying asset value exceeding US$5 billion. For more information visit .

Source: Energy Investors Funds